Chinese social-network giant, which had been in talks for $2 billion syndicated loan, is increasing the amount after loan was oversubscribed

Tencent Holdings Ltd. is increasing the amount of its planned bank loan to as much as $4 billion, people familiar with the matter said, as the Chinese Internet giant beefs up its war chest for potential acquisitions.

Tencent was in talks with banks to raise $2 billion in a syndicated loan, The Wall Street Journal reported last month. But the loan’s syndication has been heavily oversubscribed, and the company now plans to raise more than $3 billion and up to $4 billion, the people said. The additional funds could help Tencent...